1/17/2013

20 Stocks With Yields Over 10% And Highest Buy Ratings

Most
recommended stocks with very high yields originally published at "long-term-investments.blogspot.com". I love stocks with
high dividend yields but there are only a few with sustainable payments. I
think about Altria or Lorillard. Other stocks have a huge potential for a
dividend cut, also if they are a Dividend Champion or a stock with a very long
dividend growth history. I made this investment mistake with Avon Products. The
company was highly leveraged and became some operations problems. Finally they reduced
the dividend dramatically.Most
of the people need stocks with very high yields. I don’t because my private
wealth is high enough to catch the dividend payments and live off it. In the
past, I often thought it would be the only solution to put all my money into
the highest yielding stocks with the most attractive fundamentals. This
strategy failed and I lost much money within the closed-end shipping industry. That
was a big mistake from which I learned and I like to share this with you.

Please
don’t put all your money into one stock or make a single bet on a high-yield stock.
This is very risky. That’s all I can say. Make a good research and try to avoid
an overweighting of a stock or asset theme.

Each
month, I made a regular screen about the stocks with the highest dividend
yields because I believe there is a lot of value information in it for my readers.
This month, I like to show you the 20 most recommended stocks with a
double-digit dividend yield and a higher market capitalization (over USD 300
million). Out there are 95 companies with a very high yield but only 35 have a
buy or better recommendation. The REIT industry is still a big player on my
screen with 6 representatives.

Northern Tier Energy (NYSE:NTI) has a market capitalization of $2.34 billion. The company employs 2,667 people, generates revenue of $4.280 billion and has a net income of $28.30 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $452.10 million. The EBITDA margin is 10.56 percent (the operating margin is 9.87 percent and the net profit margin 0.66 percent).
Financial Analysis:
The total debt represents 30.23 percent of the company’s assets and the total debt in relation to the equity amounts to 96.70 percent. Due to the financial situation, a return on equity of 9.48 percent was realized. Twelve trailing months earnings per share reached a value of $4.43. Last fiscal year, the company paid no dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 5.76, the P/S ratio is 0.55 and the P/B ratio is finally 7.51. The dividend yield amounts to 34.73 percent and the beta ratio is not calculable.

Long-Term Stock History Chart Of Northern Tier Energy (NTI)

Long-Term Dividends History of Northern Tier Energy (NTI)

Long-Term Dividend Yield History of Northern Tier Energy (NTI)

Companhia Energetica de Minas Gerais (NYSE:CIG) has a market capitalization of $9.43 billion. The company employs 8,706 people, generates revenue of $7.743 billion and has a net income of $1.182 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.620 billion. The EBITDA margin is 33.84 percent (the operating margin is 27.91 percent and the net profit margin 15.26 percent).
Financial Analysis:
The total debt represents 42.24 percent of the company’s assets and the total debt in relation to the equity amounts to 134.35 percent. Due to the financial situation, a return on equity of 20.79 percent was realized. Twelve trailing months earnings per share reached a value of $1.93. Last fiscal year, the company paid $0.74 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 5.73, the P/S ratio is 1.20 and the P/B ratio is finally 1.64. The dividend yield amounts to 22.15 percent and the beta ratio has a value of 0.74.

American Capital Mortgage Investment (NASDAQ:AGNC) has a market capitalization of $10.63 billion. The company generates revenue of $1.108 billion and has a net income of $770.48 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $750.34 million. The EBITDA margin is 67.67 percent (the operating margin is 70.04 percent and the net profit margin 69.48 percent).
Financial Analysis:
The total debt represents 83.81 percent of the company’s assets and the total debt in relation to the equity amounts to 782.19 percent. Due to the financial situation, a return on equity of 19.80 percent was realized. Twelve trailing months earnings per share reached a value of $3.02. Last fiscal year, the company paid $5.60 in the form of dividends to shareholders.
Market Valuation:
Here are the price ratios of the company: The P/E ratio is 10.29, the P/S ratio is 9.59 and the P/B ratio is finally 1.12. The dividend yield amounts to 16.07 percent and the beta ratio has a value of 0.42.

Long-Term Stock History Chart Of American Capital Mortgage Investment (AGNC)

Long-Term Dividends History of American Capital Mortgage Investment (AGNC)

Long-Term Dividend Yield History of American Capital Mortgage Investment (AGNC)

Take a closer look at the full list of very high yielding stocks with the highest buy ratings. The average P/E ratio amounts to 8.59
and forward P/E ratio is 8.85. The dividend yield has a value of 14.12 percent.
Price to book ratio is 1.70 and price to sales ratio 6.05. The operating margin
amounts to 52.40 percent and the beta ratio is 0.74. Stocks from the list have
an average debt to equity ratio of 2.83.

Here is the full table with
some fundamentals (TTM):

20 Highly Recommended Stocks With Very High Yields (Click to enlarge)

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7 comments:

The U.S. residential property market is not robust by any stretch of the imagination. But after five years of plummeting home values and soaring foreclosures, prices are showing signs of bottoming out in many markets. Foreclosed homes typically sell at 30% or larger discounts to homes in similar neighborhoods that aren't distressed. But the shadow inventory of homes -- homes still moving through the foreclosure process -- is beginning to dwindle, putting less pressure on home values. There are even some signs of speculation developing in some once-hot markets, such as Miami and Phoenix, as short-term investors buy and sell homes on the cheap to generate a quick profit. REITs are a good choice.

Great ideas, but the dividend space is becoming crowded. Diversification is the rule. Double down has never worked out. I Keep looking for breakouts and hidden treasures. Good work appreciate your efforts, the site is a little flakey, but it runs.

Dividend Yield Passive Income Portfolio Holdings

What is a dividend? A dividend is a payment by the company to its shareholders. Normally, a stock pays 4 times a year a quarter dividend in order to participate investors at the company’s success. The amount of dividends in relation to the earnings of a company is called payout ratio. The figure measures the part of the earned money which is paid to the shareholders. A payout ratio of up to 50 percent (half of it's earnings) is a good figure. Sometimes it could be possible that companies can pay 90 percent of its net income due to its business model. Those businesses don’t need much money for growing.

The dividend amount in relation to the price that an investor pays is called the dividend yield. The value measures the return of the investor. A dividend yield of 5 percent (High-Yield) means that the investor receives 5 percent of his investment in cash - pretax within a year. This value is estimated for the full year dividends. Most of the highest yielding dividend stocks have only a big quarter dividend of more than one percent because of it's unsustainable dividends. The capital market expects a dividend dividend cut by the company.

An important date for investors is the ex-dividend date. This is the day on which the new investor doesn’t receive any dividend payments. He must wait 3 month for the next quarter dividend.

By Dividend Yield - Stock, Capital, Investment

What is a Stock? Stocks (also called stock or share) are part of the capital stock of a company. It represents the original equity paid into the company. The capital stock could be traded at well-known stock markets like the New York Stock Exchange (NYSE) or NASDAQ.Every stock or share represents a partition ownership to the company. A stock owner has the ability to receive dividends and has a voting right for the annual general meeting (AGM). The stock owner participates on the business opportunities and risks.

There are two main stock types available: common stock and preferred stock. A common stock gives the shareowner the ability to vote at the annual general meeting and to receive dividends. A preferred stock has no voting right but for compensation, a higher claim for earnings and assets.

By Dividend Yield - Stock, Capital, Investment

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